2 Answers

If you would like to lower your taxes for 2014, you don't have much time left to get that IRA opened before the deadline, which is the date you file your 2014 tax return, or no later than April 15, 2015.

As for opening an IRA account, just about any financial institution can help you set up an account. Your local bank or discount brokerages like Charles Schwab, or TD Ameritrade can all help.

Once the account is opened you need to put some money into it. For 2014 there's a $5500 maximum, unless you're over age 50. Then you can put an additional $1000 "catch-up" contribution in.

Once you've got the account opened, and you've contributed some money you will have secured your tax deduction.

The next question you might have is how do you want to invest the money you've put into the account?

You know how when you are checking out a new car at the local Ford dealership, they don't ever recommend that you go get a Honda? Well banks, insurance companies and brokerages work like that too. They're not going to suggest that you use their competitors products instead of what they're selling. That might not be a big deal to you, but I think it's helpful for people to understand who they're talking to.

If you would rather deal with someone who will make recommendations on how you should invest your money that are based on what they feel would be best for you, then you might want to try and find an adviser that will act as a "fiduciary". That just means they're required to put your interests first, not those of the company they work for.

There are many of these types of advisers out there, and lots of them can be paid by the hour for their advice.

First, anyone can open a Traditional IRA account, before age 701/2, however, for the tax deduction, you need to check if you are qualified for full deduction or the %, based on IRS rule by your household income limits. Check with your CPA.

Second, even if you are not getting the full tax deduction, you still can open a non-qualified IRA which is not tax deductible for 2014, but, retirement accounts are not subject to the 3.8% surtax. It is a long run tax advantage.